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Presentation materials for financial resultsFY2026 full year; FY2027 full-year outlook14 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net SalesFY2026 10,107; FY2027 outlook 10,550–10,760
Operating profitFY2026 971; FY2027 outlook 1,365–1,555
Ordinary incomeFY2026 940
Net incomeFY2026 682; FY2027 outlook 955–1,090
Selling, general and administrative expensesFY2026 5,071; FY2027 outlook 5,195–5,200
Gross Profit MarginFY2026 64.7%. Gross profit margin year on year: not disclosed (cost of sales ratio 35.3%, up 3.8 percentage points year on year)
Operating profit marginFY2026 9.6%, down 6.7 percentage points year on year. FY2027 outlook 12.9%–14.5%, up 3.3–4.8 percentage points year on year
Results for the three months of the current quarterQ4 FY2026: revenue ¥295.3 billion, adjusted operating profit ¥53.4 billion, adjusted operating margin 18.1%, net income ¥24.8 billion and adjusted EPS ¥36
Full-year earnings forecastFY2027: revenue ¥1,055.0–1,076.0 billion, operating profit ¥136.5–155.5 billion, adjusted operating profit ¥160.5–179.5 billion, net income ¥95.5–109.0 billion, EPS ¥90–102, adjusted EPS ¥106–119 and annual dividend ¥30
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Achieved results above the revised earnings outlook range (FY2026)Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Adjusted operating profit in FY2026: sales volume and other changes +¥1.2 billion, cost ratio changes ▲¥37.5 billion, SG&A changes ▲¥5.2 billion and foreign exchange and other factors ▲¥3.7 billion. Q4: sales volume and other changes +¥6.6 billion, cost ratio changes ▲¥19.0 billion, SG&A changes +¥0.3 billion and foreign exchange and other factors +¥5.3 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
FY2027 foreign exchange assumptions: ¥155 to the U.S. dollar, ¥181 to the euro and ¥22.5 to the Chinese yuan. Moderate growth is expected in the first half, followed by accelerating growth in the second halfNew initiatives
Introduction of a new operating model; strategic review of surgical endoscopy and other therapeutic areas; launch of more than 10 new products in FY2027; share buybacks of up to ¥60.0 billion; and transition to a shareholder return framework combining dividends and share buybacksKey KPIsA metric the company considers important as a management benchmark.
Adjusted EPS ¥92 (▲21% year on year), adjusted FCF ¥53.5 billion (▲51% year on year), equity ratio 52.8% (up 0.4 percentage points year on year) and more than 10 new product launches planned for FY2027Segment results
FY2026: Gastrointestinal Endoscopy Solutions—revenue ¥697.4 billion (+3%), operating profit ¥136.4 billion (▲20%) and adjusted operating profit ¥164.4 billion (▲13%); Surgical Intervention—revenue ¥313.1 billion (▲3%), operating loss ¥15.0 billion and adjusted operating profit ¥0.8 billion (▲97%). FY2027 outlook: Gastrointestinal Endoscopy Solutions—revenue ¥744.0–749.0 billion, operating profit ¥173.5–180.0 billion and adjusted operating profit ¥181.5–188.0 billion; Surgical Intervention—revenue ¥311.0–327.0 billion, operating profit/loss of ▲¥2.5 billion to ¥10.0 billion and adjusted operating profit ¥5.0–17.5 billionMedium-term management plan targets
FY2027–FY2029 financial guidance: 5% year-on-year revenue growth by FY2029, annual operating margin improvement of more than 100 basis points from FY2026 and EPS growth of more than 10%Financial targets
Actual equity ratio: 52.8%. Maintain a normal BBB+ rating and an investment-grade rating of BBB− or higher. ROIC target: not disclosedRisk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
The impact of the FDA-related shipment suspension is already reflected in the FY2027 outlook. The amount is not disclosedNumber of stores and locations
8 sites subject to inspection. Number of stores and openings and closures during the period: not disclosedCapital expenditures
FY2026 664; FY2027 outlook 672–680
Annual Dividend
FY2027 annual dividend: ¥30 (interim and year-end breakdown: not disclosed)Payout ratio
Not disclosed. Transition to a shareholder return framework that emphasizes the balance between dividends and share buybacksAcquisition of treasury shares
Up to ¥60.0 billion planned for FY2027. Number of shares and period: not disclosed| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | FY2026 full year; FY2027 full-year outlook |
| Net Sales | FY2026 10,107; FY2027 outlook 10,550–10,760 |
| Operating profit | FY2026 971; FY2027 outlook 1,365–1,555 |
| Ordinary income | FY2026 940 |
| Net income | FY2026 682; FY2027 outlook 955–1,090 |
| Gross Profit Margin | FY2026 64.7%. Gross profit margin year on year: not disclosed (cost of sales ratio 35.3%, up 3.8 percentage points year on year) |
| Operating profit margin | FY2026 9.6%, down 6.7 percentage points year on year. FY2027 outlook 12.9%–14.5%, up 3.3–4.8 percentage points year on year |
| Selling, general and administrative expenses | FY2026 5,071; FY2027 outlook 5,195–5,200 |
| Results for the three months of the current quarter | Q4 FY2026: revenue ¥295.3 billion, adjusted operating profit ¥53.4 billion, adjusted operating margin 18.1%, net income ¥24.8 billion and adjusted EPS ¥36 |
| Full-year earnings forecast | FY2027: revenue ¥1,055.0–1,076.0 billion, operating profit ¥136.5–155.5 billion, adjusted operating profit ¥160.5–179.5 billion, net income ¥95.5–109.0 billion, EPS ¥90–102, adjusted EPS ¥106–119 and annual dividend ¥30 |
| Self-assessment against the plan | Achieved results above the revised earnings outlook range (FY2026) |
| Segment results | FY2026: Gastrointestinal Endoscopy Solutions—revenue ¥697.4 billion (+3%), operating profit ¥136.4 billion (▲20%) and adjusted operating profit ¥164.4 billion (▲13%); Surgical Intervention—revenue ¥313.1 billion (▲3%), operating loss ¥15.0 billion and adjusted operating profit ¥0.8 billion (▲97%). FY2027 outlook: Gastrointestinal Endoscopy Solutions—revenue ¥744.0–749.0 billion, operating profit ¥173.5–180.0 billion and adjusted operating profit ¥181.5–188.0 billion; Surgical Intervention—revenue ¥311.0–327.0 billion, operating profit/loss of ▲¥2.5 billion to ¥10.0 billion and adjusted operating profit ¥5.0–17.5 billion |
| Breakdown of Factors Affecting the Change | Adjusted operating profit in FY2026: sales volume and other changes +¥1.2 billion, cost ratio changes ▲¥37.5 billion, SG&A changes ▲¥5.2 billion and foreign exchange and other factors ▲¥3.7 billion. Q4: sales volume and other changes +¥6.6 billion, cost ratio changes ▲¥19.0 billion, SG&A changes +¥0.3 billion and foreign exchange and other factors +¥5.3 billion |
| Key KPIs | Adjusted EPS ¥92 (▲21% year on year), adjusted FCF ¥53.5 billion (▲51% year on year), equity ratio 52.8% (up 0.4 percentage points year on year) and more than 10 new product launches planned for FY2027 |
| Number of stores and locations | 8 sites subject to inspection. Number of stores and openings and closures during the period: not disclosed |
| Assumptions Underlying the Business Outlook | FY2027 foreign exchange assumptions: ¥155 to the U.S. dollar, ¥181 to the euro and ¥22.5 to the Chinese yuan. Moderate growth is expected in the first half, followed by accelerating growth in the second half |
| Risk amount incorporated into the outlook | The impact of the FDA-related shipment suspension is already reflected in the FY2027 outlook. The amount is not disclosed |
| Medium-term management plan targets | FY2027–FY2029 financial guidance: 5% year-on-year revenue growth by FY2029, annual operating margin improvement of more than 100 basis points from FY2026 and EPS growth of more than 10% |
| Financial targets | Actual equity ratio: 52.8%. Maintain a normal BBB+ rating and an investment-grade rating of BBB− or higher. ROIC target: not disclosed |
| Annual Dividend | FY2027 annual dividend: ¥30 (interim and year-end breakdown: not disclosed) |
| Payout ratio | Not disclosed. Transition to a shareholder return framework that emphasizes the balance between dividends and share buybacks |
| Acquisition of treasury shares | Up to ¥60.0 billion planned for FY2027. Number of shares and period: not disclosed |
| Capital expenditures | FY2026 664; FY2027 outlook 672–680 |
| New initiatives | Introduction of a new operating model; strategic review of surgical endoscopy and other therapeutic areas; launch of more than 10 new products in FY2027; share buybacks of up to ¥60.0 billion; and transition to a shareholder return framework combining dividends and share buybacks |
Items this document does not state (6)
Progress against full-year forecastUnit price and quantity metricsNumber of employeesOrders received and order backlogMarket Size / ShareKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The decline in FY2026 profit margins was attributed to an FDA-related import alert and voluntary shipment suspension, U.S. tariffs, an unfavorable sales mix and one-time restructuring costs. Factors expected to drive improvement in FY2027 include the gradual reduction of one-time factors, efficiency gains from the new operating model and disciplined cost management.
How to read this page
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